New $100 Bills Hit the Streets

The newly redesigned $100 note goes into circulation Tuesday, with new security features and an updated portrait of Benjamin Franklin, among other details. Financial institutions can now order the new bills, starting the process of distributing the notes into wallets around the world. (See a slideshow history of the $100 bill)

This series marks the third major revamp of the bill, and the first since 1996. It incorporates two new security features that are designed to thwart counterfeiting threats, said Sonja Danburg, director of the Federal Reserve’s Currency Education Program.

In one, a three-dimensional blue ribbon, just to the right of Mr. Franklin’s portrait, contains images of 100s and bells that appear to shift when the bill is moved. The other security tactic is a copper-hued inkwell and bell that change color to green when tilted and gives the illusion that the bell disappears into the inkwell. Play with an interactive bill here.

Other changes include a larger portrait of Mr. Franklin that no longer includes an oval around his face. The back of the bill now has an image of the rear of Independence Hall, rather than its front.

“We do those things to make it a little harder for counterfeiters to replicate,” Ms. Danburg said. “It’s just about raising the bar and making it that much more complicated to reliably replicate the note’s design.”

The Bureau of Engraving and Printing has produced 3.5 billion of the notes, worth $350 billion. While older $100 notes are still valid, some people will turn in the previous designs. A $100 bill lasts, on average, about 15 years. As older bills work their way through the system, they are eventually returned to the Fed and destroyed.

The $100 bill is America’s most international note. Between one-half and two-thirds are held outside the U.S., according to the Federal Reserve. About $1.15 trillion of U.S. currency circulates world-wide.

And while many had speculated the note would be the first graced with current Treasury Secretary Jacob Lew’s famous signature, it will instead be the signature of Tim Geithner, his predecessor. He approved the redesign, and the printing plates had already been created before the leadership change earlier this year.

Earlier efforts to print and circulate the bill were plagued with delays after a series of complications with the new paper caused creases as it went through the printing press. The redesigned note was originally unveiled in April 2010 and was set to be circulated in February 2011.

About Real Time Economics

Real Time Economics offers exclusive news, analysis and commentary on the U.S. and global economy, central bank policy and economics. Send news items, comments and questions to the editors and reporters below or email realtimeeconomics@wsj.com.